BANKING AFFAIRS

Detailed explanation-1: -Divisibility: Money must be capable of being divided into smaller parts. Divisible forms of money help make transactions of all sizes and amounts possible.

Detailed explanation-2: -Divisibility is the property of a good that can be broken into smaller amounts without losing value. Because economic transactions frequently occur in varying amounts, a currency must be divisible to be used broadly in an economy.

Detailed explanation-3: -If someone wants to buy a smaller unit of a commodity, then divisibility of money can make it possible. For example, cows cannot function as good money. This is because you cannot divide a cow without making it lose its value.

Detailed explanation-4: -Why is it important for money to be divisible? It is necessary to be able to divide money so that it can be used to purchase items of lesser value as well as those of greater value.